Sunday, 28 September 2014

5 Things You Can Learn From Other Top Investors

By Murray Newlands

Successful investing is tricky; here are fives ways that you can learn from top investors to get the most out of your portfolio.

No matter how well your investments may be going, there is always room for improvement. There's always something that you can learn from other investors in any field--after all, watching your competitors is always the best way to learn. You can avoid masking the same mistakes that they've made and even commandeer their successful strategies for your own benefit. These are five things that you can learn from other top investors to help you improve your own portfolio.

Buy and Hold Good Stocks Over Trading Fast

Many investors would rather have their money go through the market and back into their pockets in a rapid-fire manner. While this can be a good way to turn a profit on stocks, you should hold on to stable stocks to limit a risk in your investment portfolio. They're a good way to keep a hold of some wealth while you experiment with another segment of your wealth.

Keep Up On Your Quarterly Statements

Use these to monitor your fees and back out of areas that are becoming too expensive in order to manage your money better and maximize the returns going into your pocket. Banks and brokerages know that not many people read the statements that are sent to them, so be one of the few that is in the know on information that is publicly available!

Do Not Buy Into Hot Stocks

Just because a stock is doing well one year does not mean that that track record will continue in the future. In fact, a stock peaking radically one year generally means that it will crash in a few years to come--many "hot stocks" of the year can be risky investments in the future that become worthless stocks in good time.

Diversifying Your Portfolio Is Not Hollow Advice

Though you have heard it time and time again, you can always improve your investment standing by diversifying your portfolio. This does not mean just having stocks from different areas of the market, but it means diversifying your sources of wealth (having mutual funds in addition to single stocks, venture capital, et cetera) as well.

Raise Your Exposure to Surprises That Will Increase Your Wealth

Sometimes taking a small portion of your wealth and investing it into a risky area can expose you to stocks that will raise exponentially in value. Though this is not how you should rely on making your money on the market, it definitely has its place in increasing your invested wealth.

When it comes down to it, there are plenty of tips and tricks that you can take from other top investors to increase the value of your own investment practice, but the five tips listed above will lie at the core of other more tailored advice for where your investment portfolio is focused. By adhering to these five tips, you are sure to find success in your investments, no matter what the state of the market is!

Quote for the day

“Wisdom consists of seeing many things and concentrating on one thing.” - Dickson G. Watts

5 Investment Rules No One Ever Told You

By Murray Newlands

There's lots of investment advice out there on the Internet, but these are the five things that you should know that you've never been told.

Everybody knows the most basic rules of investing--buy low, sell high, read the business plan, etc. These pieces of advice are certainly helpful and can help you avoid failure, but there are some other tips that you've likely never been told before. These untold rules of investing can help you take your portfolio to the next level and ensure that you get a great return on every dollar spent. Understanding these five rules and applying them can help you generate an ROI that you never though possible, even if you're investing with a small amount of capital. These are the five investment rules that no one ever told you.

Pick the Investment Opportunities That Work Best For You

While it's always a good idea to diversify your portfolio, you're still going to want to invest in things that you know. Even if you know nothing of investments, you can still find investment opportunities that are in your area of expertise or that have to do with businesses that you know something about. If you want to try to expand your portfolio and venture outside of your own expertise, it's a good idea to consult financial investor to make sure that your investments are safe and sound, and are worth your hard earned money.

Connect With Your Personal Habits

Why is this important, you ask? Well, if you make going to a certain business a daily habit of yours and you notice others doing the same, it could be a good indicator of a smart investment to make. Even though buying stock in large companies will generally not be the way to strike it rich, having some safer, more popular stocks in your portfolio makes a good buffer against riskier investments. When it comes to investing, it's a good idea to stick to what you know and things that you're personally invested in.

Be Wary of Overly Technical Jargon

While there will probably be terminology that you don't know if you're new to investing, an over use of technical jargon could be a means to hide poor performance or undesirable attributes of an investment opportunity. Companies know that not many people understand corporate lingo, so they will use that to try to dazzle potential investors to hopefully gain some capital back. If you can spot technical jargon and avoid it, you'll likely have a safer investment on your hands.

Be Aware of the People Running the Companies You're Investing In

Knowing an executive's past performance record is important to note with their current business venture. A string of failures behind them is generally not a good sign for their current business. In addition to that, you should want to invest your money into someone that you can trust to handle a business and grow a company, and you should evaluate that based on not only their professional career but their personal track record as well with donating to causes and similar things.

Start Simple

Though you may see many different options for investing and want to try them all, going into an investment half understanding what it entails is a means to certain financial ruin. So, if you're just getting into investing, or you're looking to a market or an industry that you're not familiar with, start simple and build your investment from the ground up.

Successful investing is tricky and requires a great deal of expertise and an understanding of current trends and markets. Of course, traditional investing tips can help you make sound decisions, but these five lesser know tips can help you ensure a great ROI on your hard earned money.